German banks are holding an estimated â¬200bn ($310bn) in non-performing loans, the highest level in Europe, after a slowdown in their ability to sell the loans to investors last year, according to research from accountancy firm Ernst & Young.
Non-performing loans are loans at risk of default, or loans where the borrower fails to meet the redemption schedule. Germany has the largest share of non-performing loans in Europe. Italian banks, which have the second largest exposure, had about â¬100bn in bad debts, as of the end of last year.
